Affordability Calculator
What can you afford? Start with your income and savings to see your price ceiling, or start with a home’s price to see the monthly cost and cash to close. Results update as you type
Your finances
Mortgage
Monthly housing costs (estimates)
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Comfortable budget (32%/40%)
Price: — | Payment: —
Cash to close breakdown
If rates move
Quick reference: income needed by price
Programs that can lower your cost
First Home Savings Account (FHSA)
Contribute up to $8,000/year (lifetime $40,000) toward your first home. Contributions are tax-deductible and withdrawals for a qualifying home are tax-free.
Home Buyers’ Plan (HBP)
Withdraw up to $60,000 from your RRSP ($120,000 per couple) for your first home, repayable over 15 years.
Ontario LTT first-time buyer refund
Get back up to $4,000 of Ontario land transfer tax. Applied automatically in the calculator above when “first-time buyer” is checked.
Federal home buyers’ tax credit
A $10,000 non-refundable credit worth up to $1,500 in tax relief for first-time buyers.
Affordability questions
Should I use a 25-year or 30-year amortization?
A 30-year amortization lowers your monthly payment and lets you qualify for a higher price, but you pay more interest over time and CMHC adds 0.20% to the insurance premium. For a first home you plan to keep, 25 years builds equity faster.
What is the difference between the lender maximum and the comfortable budget?
Lenders let you stretch to 39% of gross income on housing (GDS) and 44% including debts (TDS). The comfortable budget uses 32%/40% instead, leaving room for savings, maintenance and rate increases. Most buyers are happier near the comfortable number.
How does the stress test work?
You must qualify at the higher of your contract rate plus 2%, or 5.25%. On a $700,000 mortgage at 4.79%, the stress rate is 6.79% and the qualifying payment is about $700/month higher than your actual payment.
What is not included in these numbers?
Moving costs, utility hookups, immediate repairs, and ongoing maintenance (budget about 1% of the home’s value per year). New builds may have development levies and HST. Talk to your lawyer for exact closing figures.
Know your number before you book showings
A calculator is a starting point. In 15 minutes I will go through your numbers, check what is realistic in today’s market, and map out your next steps.
Call or text: (647) 632-0871 | Email: sim@simsahota.com
Estimates for planning, not a mortgage approval. Stress-test payments are used for the income check. Land transfer tax: use the Closing Costs Calculator for a detailed breakdown.
More tools: Closing Costs Calculator | First-Time Buyer Incentive Checker | Investment Deal Analyzer | Ontario Rental Market Report
